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Daily Report

Dec 18th, 2017: Dollar Dips Despite Tax Approval

Morning Report: 07.00 London

Markets are quiet this morning despite apparent good news from the US on the tax bill front. The US dollar is on the back foot, helping dollar pairs to nip higher.

The NZD/USD is the top performer after out-performing on Friday, rising by 0.59%. The neighbouring AUD/USD is up 0.33%.

The EUR/USD and GBP/USD and are pushing higher, but the balance of power remains with the euro as the EUR/GBP recovers after a solid counter rally on Friday.

The USD/JPY gapped higher at the open, but has since started to slip back. Other yen pairs are climbing higher though, with the AUD/JPY in particular performing well.

Coming up today

This morning, we have European CPI at 10.00.

At 13.30, we get Canadian foreign securities purchases.

Trade Idea

The EUR/JPY has been stuck in a trading range since the beginning of September. With the yen and euro appearing to cancel each other out, we could see this trading range extend to the new year.

Dec 18th, 2017: Dollar Dips Despite Tax Approval

A good way to play this is a LOWER trade predicting that the EUR/JPY will close between a high of 133.50 and a low of 132.00 in 21 days for a potential return of 137%.

Dec 18th, 2017: Dollar Dips Despite Tax Approval